MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. August 10, 2017 (REPORT 32) NONFAT DRY MILK - WEST Western f.o.b. spot prices for low medium heat nonfat dry milk are lower on the range. However, NDM values are mixed on the mostly series on a narrower range. The low end of the range is reflecting NDM sales from Q1/Q2 production, while the top is mirroring sales from Q3 production. This week, contract sales account for the majority of low/medium heat NDM transactions. Although the current domestic demand for NDM is even, most processors are anticipating higher interest from buyers/end users in the near term as the baking season approaches. Cheese fortification with NDM is active is some processing plants. Meanwhile, NDM/SMP demand from Mexico is strong as farm milk intakes are declining there. Thus, most NDM trades from the U.S. West region to Mexico are occurring at the top of the pricing range. Back to the U.S., NDM production is active to marginally lower as regional farm milk yields decline. NDM inventories are generally long. Prices for high heat nonfat dry milk remain unchanged from last week. Demand is currently silent. Seasonal interest from bakers and mixed accounts is expected to develop beyond current demand in the short term. Spot sales activity is light. The CME Group monthly average price for Grade A NDM during July was $0.8616, compared to $0.8638 a year ago. The July 2017 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.8940 compared to $0.8910 a year ago. The average for Western high heat nonfat dry milk is $1.0226 compared to $.9713 a year ago. The NASS Dairy Products report noted U.S. human NDM production during June 2017 in the West region totaled 98.9 million pounds, 23.4 percent higher than one year ago, and 1.3 percent above the previous month. Total U.S. human NDM production during June 2017 was 163.7 million pounds, up 11.6 percent from last year. Cumulative human NDM production from January to June was 958.4 million pounds, 2.4 percent above the previous year. Total U.S. NDM, human, month ending stocks for June were 297.5 million pounds, 28.9 percent above a year ago. According to FAS, during June, U.S. NDM exports totaled 100.9 million pounds, 8 percent higher than a year ago. From January-June, U.S. NDM exports totaled 679.4 million pounds, 20 percent above last year during the same time span. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7950 - .9300 MOSTLY: .8800 - .9100 HIGH HEAT: .9800 - 1.0650 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago June Total 100.9 + 8 TOTAL, JAN - JUNE 679.4 + 20 1 Mexico 317.2 + 27 2 Philippines 81.7 - 8 3 China 45.0 + 125 4 Indonesia 33.7 - 27 5 Malaysia 31.5 + 32 1100CT AJ Teran Angel.Teran@ams.usda.gov 608.422.8593 USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: http://www.ams.usda.gov/market-news/dairy Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home